In the Short Run, an Increase in Aggregate Demand

question 119

Multiple Choice

In the short run, an increase in aggregate demand

• A) lowers the price level and decreases real GDP.
• B) lowers the price level and increases real GDP.
• C) raises the price level and increases real GDP.
• D) raises the price level and decreases real GDP.

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Definitions:

Protostomes

A group of animals characterized by developing the mouth before the anus during embryonic development, includes mollusks and arthropods.

Determinate Cleavage

Type of cleavage, characteristic of protostomes, in which the fate of each cell is determined when the cell is produced. Compare with indeterminate cleavage.

Deuterostomes

A group of animals characterized by their embryonic development; during which the anus forms before the mouth.

Protostomes

Protostomes are a group of animals characterized by an embryonic development in which the mouth forms before the anus during early gastrulation.